Important New Deadline – R&D Tax Credits

It is estimated that companies filing R&D Tax Credit claims for the first time in any particular year account for up to 20% of all claims which is significant.

If a client is planning to claim Research and Development (R&D) tax relief or expenditure credit for accounting periods beginning on or after 1 April 2023, the company must submit a claim notification form if:

• They are claiming for the first time
• The last claim was made more than 3 years before the last date of the claim notification period

Notifications

The notification must be submitted within 6 months of the end of the accounting period.

For example:

If the period of account in which you incur R&D costs runs from 1 January 2024 to 31 December 2024:

• the first day of the accounting period is 1 January 2024
• the end date of the accounting period is 31 December 2024
• submit the claim notification form between 1 January 2024 and 30 June 2025

The notification is submitted through the government portal. There is a fair amount of information is required, which includes a summary of the high-level planned R&D activities. Here you must describe how the project will meet the eligibility criteria or definition of R&D. This step is critical as HMRC likely has checks in place to identify ineligibility.

There are many nuances to making this notification. RDP is here is assist any client submit this notification as well as provide our full service to complete the entire R&D Tax Credit submission. We also have our Innovation Connection Program. Which a client can use to identify and track R&D work in real time.

If you would like to know more about the Important New Deadline or need help with a claim or compliance check, then please contact the team at [email protected]